1. 1 | Diversify, diversify, diversify… DIVERSIFY, DIVERSIFY, DIVERSIFY… A Key Growth Strategy for Small and Mid-Sized Firms Laura Didyk Vice President, Financing & Consulting – Alberta South BUSINESS DEVELOPMENT BANK OF CANADA (BDC)

2. 2 | Diversify, diversify, diversify… WHY DIVERSIFY? DIVERSIFIED FIRMS OUTPERFORM UNDIVERSIFIED FIRMS Portion of firms with strong revenue growth 1

3. 3 | Diversify, diversify, diversify… WHAT IS DIVERSIFICATION? Sell internationally 5 Have clients or a physical presence in more than one city 4 Operate in more than one sector 3 Have multiple product or service lines 2 Don’t rely heavily on a single client 1 2

4. 4 | Diversify, diversify, diversify… WHY DON’T MORE BUSINESSES DIVERSIFY? Source: June Warren-Nickles and Grant Thornton’s Canadian Oil and Gas Services Supply Outlook survey for March 2016 3 Problems accessing capital 35%of small businesses anticipate difficulties accessing capital 1 Lack of awareness 60% of businesses indicated they are unsure how to respond to the downturn 2 1

5. 5 | Diversify, diversify, diversify… WINNING DIVERSIFICATION STRATEGIES Work with partnersPursue small contracts Fully harness existing assets REMEMBER The purpose of diversification is not only to grow, but also to manage risk. 4

6. 6 | Diversify, diversify, diversify… HOW CAN ECONOMIC DEVELOPERS SUPPORT DIVERSIFICATION? 5 Connect entrepreneurs with resources Highlight success stories Increase awareness